COMPENSATION The Applied Materials Compensation Philosophy helps us attract and retain outstanding people, motivate employees to deliver the strategy and reward for world class performance. Our compensation program is composed of various elements. Each of them has defined objectives: • Competitive salaries regularly benchmarked to attract and retain talent • Bonus programs that motivate and reward great performance • A strong culture of recognition • Equity compensation programs to share value Policy In a nutshell Contributors Provided for on-going performance and delivery in specific job responsibilities, Base salary  the base salary is determined according to the relevant market rate together with experience and capabilities. Market studies are conducted annually, and salaries are reviewed each year. There are three bonus plans based on employee’s career path and level: Bonus  • Applied Incentive Plan (AIP) • Discretionary Incentive Plan (DBI) • Sales Incentive Plan (SIP) Premiums are intended to compensate for exceptional work situations such as shift Premiums  or overtime. This can be compensated in time in lieu or through cash payment accor- ding to local policy / local agreements. Allowances  Allowances compensate for employment expenses such as commuting or business travel. They are regulated and provided locally. We want to encourage a culture where a colleagues say, “Great Job!” or where Recognition program  managers send a personal note to their employees saying, “Thank you for your hard work”. Recognition can be non-monetary (thank you cards for instance) or monetary through one-time payments (Team Awards, Special Awards and Quarterly Awards). Referral bonus  The referral bonus rewards employees who refer successful new hires. This premium is up to EUR 2.000. Employee Stock Purchase Plan (ESPP): The ESPP program is a chance to profit financially alongside Applied Materials. Employees can purchase company stock at a   minimum discount of 15% off the market price. Equities  Restricted Stock Units (RSU): Depending on the career level, performance and manager discretion, the Stock program is intended to focus and reward performance that enhances shareholder value, attracts and retains employees, and reinforces pay-for-performance. • Base salary • Bonus • Premiums COMPENSATION • Allowances HEALTH • Recognition program TOTAL • Referral bonus • Share ownership REWARDS AT plan and RSU APPLIED MATERIALS PERKS AND PERSONAL PROTECTION FINANCIAL PROTECTION